flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Report finds credit crunch accounts for 20% of nation’s stalled projects

Report finds credit crunch accounts for 20% of nation’s stalled projects

Persistent financing crunch continues to plague design and construction sector.


By By BD+C Staff | November 29, 2011
AIA finance design construction
The lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross Domestic Produ

The American Institute of Architects (AIA) released a comprehensive report, which concludes that the major obstacle holding back job creation in the U.S. is the persistent lack of construction financing, despite record low interest rates.

“This report should lay to rest any doubt about what is a key source for holding back job creation in the United States,’ said Kermit Baker, chief economist of the AIA. “It is the lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross Domestic Product.”

The report found:

  • The share of projects stalled due to financing problems through August 2011 has almost doubled since 2008
  • One-in-five stalled projects are directly resulting from financing problems
  • Financing problems account for a higher share of stalled projects in the education and multi-family sector
  • More than 25% of projects reported as stalled due to the credit crunch could qualify for LEED, Green Globes, or other green certification status
  • Financing issues are less of a factor holding back projects in the manufacturing, private healthcare, and retail environments

“Whatever, the reason – be it over-regulation, the threat of a double-dip recession or the reluctance to have too many loans on the books, lenders are just not lending to a major job-producing sector of the American economy,” Baker noted. “Until more credit is extended, the potential of non-residential construction to promote greater levels of economic growth will not be realized.” BD+C

Related Stories

Sponsored | | Oct 19, 2014

The Exploration Tower in Port Canaveral dazzles visitors

With a mission to provide the experience of a lifetime, the Exploration Tower at Port Canaveral, Fla., is designed to inspire, as visitors learn about the history and nature of the port and beyond. SPONSORED CONTENT

Sponsored | | Oct 19, 2014

What to do if your team is in a rut

Another brainstorming session, another slew of tired ideas. How can you push your team to be more creative and bring in new perspectives? SPONSORED CONTENT

| Oct 19, 2014

White House Visitor Center reopens in Washington, D.C.

Designed by SmithGroupJJR and Gallagher & Associates, renovated center shows public its unique role as office, stage, museum, park, and home.

| Oct 16, 2014

Must see: Illustrator interprets iconic windows concocted by renowned architects

Graphic designer Federico Babina has made a name for himself when it comes to art inspired by architecture, or more accurately, art inspired by architecture that's inspired by other forms of art. 

| Oct 16, 2014

Henning Larsen Architects to design train station for planned Danish town

Danish firm Henning Larsen Architects won Frederikssung municipality’s architecture competition for a regional train station in the planned city of Vinge—Denmark’s largest urban development.

| Oct 16, 2014

Report: How to keep public libraries relevant in a digital age

Public libraries will avoid being relegated to the scrap heap of history in a digital age as long as they continue to serve as platforms for learning, creativity, and innovation that strengthen their communities, according to a new Aspen Institute report.

Sponsored | | Oct 16, 2014

Drilling deeper: The booming Bakken Shale region

The Bakken Shale region, which spans from central North Dakota to the northeastern corner of Montana, is rapidly growing as a result of the oil and gas boom. SPONSORED CONTENT

| Oct 16, 2014

Germany to commemorate Berlin Wall anniversary with 10-mile LED 'balloon' installation

The project, named Lichtgrenze (or Border of Light), makes for a colossal art installation dividing Berlin back to East and West. Eight thousand LED light-filled balloons, each 11 feet high, will line the path.

| Oct 16, 2014

Perkins+Will white paper examines alternatives to flame retardant building materials

The white paper includes a list of 193 flame retardants, including 29 discovered in building and household products, 50 found in the indoor environment, and 33 in human blood, milk, and tissues.

Sponsored | | Oct 16, 2014

Mill Brook Elementary School colors outside the lines with creative fire-rated framing solution

Among the building elements contributing to the success of the elementary school’s public learning areas is a fire-rated stairwell that supports the school’s vision for collaboration. HMFH Architects designed the stairwell to be bright and open, reflecting the playful energy of students. SPONSORED CONTENT

boombox1
boombox2
native1

More In Category


Warehouses

California bill would limit where distribution centers can be built

A bill that passed the California legislature would limit where distribution centers can be located and impose other rules aimed at reducing air pollution and traffic. Assembly Bill 98 would tighten building standards for new warehouses and ban heavy diesel truck traffic next to sensitive sites including homes, schools, parks and nursing homes.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021